Evergreen buck is intact vs. yen

07:20 02.04.2018

On Monday, the US currency was intact versus the Japanese yen, taking a breather after the previous week's surge. The US currency was suppressed in the face of growing worries over a US-China trade clash.

The US currency was last seen at 106.32 yen, having soared over 1.5% the previous week, demonstrating its greatest weekly revenue since September 2017.

The greenback had tacked on versus the Japanese currency the previous week, backed by signs that China as well as the United States were working behind the scenes for the purpose of averting a tough trade conflict, and also expectations for a diplomatic success over North Korea's nuclear program.

Apparently, the resulting surge in risk appetite put pressure on the safe-haven yen. The Japanese currency is prone to soaring in times of market turmoil.

Considering the simmering American-Chinese trade tensions, some experts tell that the evergreen buck’s gains versus the Japanese yen might be restricted in the nearer future.

China has dared to impose additional duties of up to 25% on 128 American products including frozen pork and on wine as well as certain nuts and fruits, responding to American tariffs on imports of such metals as steel and aluminum, as China's finance ministry informed.

The duties to take effect on Monday, actually match a list of potential duties on $3 billion in American goods released on March 23 by China.

Financial markets haven't demonstrated much reaction to China's announcement, partly due to the fact that the Chinese government had already warned of such measures.

On Monday, Asian shares demonstrated resilience, starting the fresh quarter with moderate revenues after a decent performance by global shares the previous week.

Versus a group of six key counterparts, the evergreen buck was last seen at 89.971, having rebounded from a one-week maximum of 90.178 hit last Thursday.

On Thursday, the major US currency rebounded from its unexpected dive following dismal economic data that sparked fears about the strength of the American economy and also backed the Fed’s intention to leave rates on hold in the nearer future…

On Tuesday, the euro tacked on because market participants waited for reports on inflation and growth in the euro zone, while the Japanese yen went down after Japan’s major bank told it would be more flexible in its huge stimulus program…

On Tuesday, the evergreen buck dived because the common currency bounced off and the UK pound managed to ascend to the day’s maximums reacting to reports that British Prime Minister Theresa May is going to take control of Brexit talks…